NEW YORK - Manhattan Associates Inc. (NASDAQ: NASDAQ:MANH) shares fell sharply by 7% despite the company reporting a strong first quarter with earnings and revenue surpassing analyst expectations.
The provider of supply chain and omnichannel commerce solutions announced a first-quarter adjusted EPS of $1.03, which was $0.16 higher than the analyst estimate of $0.87. Revenue for the quarter was also above consensus, coming in at $254.6 million against an expected $243.42 million.
The company's performance represents a significant improvement from the same quarter last year, with an increase in revenue from $221.0 million in the first quarter of 2023 to $254.6 million in the first quarter of 2024, marking a 15.2% rise. Adjusted earnings per share also jumped from $0.80 in Q1 2023 to $1.03 in Q1 2024, reflecting a robust growth in profitability.
President and CEO Eddie Capel expressed satisfaction with the company's first-quarter achievements, citing strong fundamentals and continued demand driving revenue momentum. Despite the broader market volatility, Capel remains optimistic about the company's market opportunities and the execution of global teams in delivering innovative solutions.
Looking ahead, Manhattan Associates provided guidance for the second quarter of 2024, projecting an EPS range of $3.86 to $3.94, which is above the analyst consensus of $3.77. The company's revenue forecast for Q2 2024 stands at $1.03 to $1.03 billion, marginally higher than the consensus estimate of $1.02 billion.
The stock's decline following the earnings release indicates that the market may have anticipated even stronger guidance or there may be concerns not directly related to the company's performance. The specifics behind the market's reaction were not disclosed, leaving investors to speculate on the reasons for the share price drop.
In the first quarter, Manhattan Associates also continued its share repurchase program, investing $73.4 million to buy back 293,592 shares of common stock. The Board of Directors has since approved replenishing the company’s share repurchase authority to $75.0 million.
Despite the market's response, Manhattan Associates' first-quarter results demonstrate a solid start to the year, with the company's leadership confident in their strategy and market position.
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